Chicago, Sept. 19 – NIO Inc. priced $1 billion of convertible notes after the market close on Tuesday, according to a press release.
The offering consists of a $500 million tranche of 3.875% six-year convertible notes with a 30% initial conversion premium. Price talk was for a coupon of 3.5% to 4% and an initial conversion premium of 27.5% to 32.5%.
The deal also includes a $500 million tranche of 4.625% seven-year convertible notes with a 30% initial conversion premium. Price talk for a coupon of 4.25% to 4.75% and an initial conversion premium of 27.5% to 32.5%.
Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and China International Capital Corp. are bookrunners for the Rule 144A offering.
Both tranches carry a greenshoe of $75 million.
The six-year tranche is non-callable until Oct. 22, 2027 and the seven-year tranche is non-callable until Oct. 22, 2028 and then subject to a 130% hurdle.
They are also subject to a clean-up call or become callable upon a tax event.
The six-year tranche is putable on Oct. 15, 2027 and the seven-year tranche is putable on Oct. 15, 2028 or upon a fundamental change.
The notes will be settled in cash, shares or a combination of both.
Proceeds will be used to repurchase a portion of the company’s existing debt securities, to strengthen the company’s balance sheet, and for general corporate purposes.
NIO is a Shanghai-based electric car manufacturer.
| Issuer: | NIO Inc.
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| Amount: | $1 billion
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| Issue: | Convertible senior notes
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| Bookrunners: | Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and China International Capital Corp.
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| Trade date: | Sept. 19
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| Settlement date: | Sept. 22
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| Ratings: | Moody’s:
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| S&P:
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| Fitch:
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| Distribution: | Rule 144A
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| Stock symbol: | NYSE: NIO
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| Stock price: | $8.55 per ADS on Sept. 19
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| Market capitalization: | $14.43 billion
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| 2029 notes
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| Amount: | $500 million
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| Greenshoe: | $75 million
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| Maturity: | Oct. 15, 2029
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| Coupon: | 3.875%
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| Conversion premium: | 30%
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| Conversion rate: | 89.9685
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| Conversion price: | $11.12
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| Call features: | Non-callable until Oct. 22, 2027 and then subject to 130% hurdle
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| Puts: | At par on Oct. 15, 2027
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| Price talk: | Coupon of 3.5% to 4% and an initial conversion premium of 27.5% to 32.5%
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| 2030 notes
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| Amount: | $500 million
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| Greenshoe: | $75 million
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| Maturity: | Oct. 15, 2030
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| Coupon: | 4.625%
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| Conversion premium: | 30%
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| Conversion rate: | 89.9685
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| Conversion price: | $11.12
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| Call features: | Non-callable until Oct. 22, 2028 and then subject to a 130% hurdle
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| Puts: | At par on Oct. 15, 2028
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